Title
Consider approving Resolution No. 2024-021 authorizing the City Manager to execute a contract with Community Waste Disposal, LLC for residential and municipal solid waste and recycling services; and take appropriate action.
Body
BACKGROUND:
Community Waste Disposal (CWD) has provided residential solid waste and recycling collection services for the City of Farmers Branch since April 1, 2016, under the Residential and Municipal Operation Solid Waste Collection Contract, effective April 1, 2016. As demonstrated in their annual presentation to the City Council, CWD continues to provide excellent service and strongly supports our community events. The contract was extended in 2019 for an additional five years, and it was amended in 2021 to add bulk collection assistance and in 2023 to provide roll-off service for City containers on an as-needed basis. The term of the contract extension, effective in 2019, will end on May 31, 2024.
DISCUSSION:
A presentation was made to the City Council on November 14, 2023, outlining the contract negotiations between City staff and CWD. After the presentation discussions, the Council directed staff to continue talks with CWD and bring a contract for solid waste and recycling services for their consideration.
By approving the resolution and renewing the service agreement with CWD for solid waste and recycling collection, the City will continue to contract with a vendor that meets and often exceeds City expectations. Like previous contracts, this agreement provides pricing and service options for (1) once-per-week garbage collection in carts, (2) twice-per-week garbage collection in carts, (3) twice-per-week garbage collection in disposable containers, (4) once-per-week recycling collection in carts, and once per month bulk collection assistance.
Regarding price increases, there are two different methods used in this contract. In the first year, the agreement includes a 4% rate increase effective June 1, 2024, through September 30, 2024. Effective October 1, 2024, there is another 4% increase. Beginning in 2025, service rate changes will be based on a combination of a regional Consumer Price Index (CPI) and compressed natural gas (CNG) market conditions, with the model heavily weighted to CPI and aligned with the fiscal year.
One item that needs to be negotiated is the service frequency for garbage collection for the homes west of I-35E. The current service frequency is once per week, and the service day is Wednesday. During the last presentation, there was a brief discussion about increasing the service frequency to twice per week, but formal direction has not been provided. The increased frequency will come with an increase in cost. In addition, the most logical day for a second garbage service would be Saturday, which creates some operational challenges for the contractor. Staff will seek direction from the City Council on increasing the garbage collection frequency by CWD and, if so desired, an appropriate start day for the expanded service.
FISCAL IMPACT:
Contracted solid waste and recycling services are budgeted for FY 2023-2024 in the amount of $1,609,600.
RECOMMENDATION:
City Administration recommends approving Resolution No. 2024-021 as presented.
POSSIBLE COUNCIL ACTION:
1. I move to approve Resolution No. 2024-021 as presented.
2. I move to approve Resolution No. 2024-021 with modifications.
3. I move to table the issue for further study or take no action.
ATTACHMENT(S):
1. Resolution No. 2024-021
2. CWD Contract 2023
3. Solid Waste Contract Presentation